Fortescue Metals Group has swung the axe on senior executives as it continues to shed cost after the plunge in iron ore prices.
Development director and significant shareholder Peter Meurs will take a two-month sabbatical from his executive role. It is believed Mr Meurs, who played a crucial role in Fortescue's expansion over the past four years, will remain on the company's board.
Senior executives were given marching orders this week including director of shared services Peter Thomas, head of procurement Kevin McCafferty and security director Isak Buitendag.
Fortescue shares gained 5.5 per cent in morning trade to $2.71
On Monday Fairfax Media revealed Fortescue was poised to sack staff after last week halving is capital expenditure budget to $US650 million.
A Fortescue spokesperson acknowledged that there had been "a small number of changes to our senior management."
"This is part of the normal evolution of our business and not a reaction to the market environment or performance related," the spokesperson said. "We made the decision to restructure the senior levels of the organisation in a way that will allow us to be even more flexible and adaptive moving forward.
"Reshaping our leadership group will make our business more responsive and innovative, ensuring all areas of Fortescue are as efficient and productive as possible.
Source: Sydeny Morning Herald
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